Crown’s suitability to hold Victorian casino licence probed after money-laundering revelations

A major investigation has been launched into Melbourne’s Crown Casino after explosive revelations. But it’s led to criticism the gambling regulator was ‘asleep at the wheel’.

Victoria’s gambling regulator has come under fire amid calls for Crown’s casino license to be immediately suspended pending an urgent review.

Crown’s suitability to hold Victoria’s only casino licence will be probed in a major review triggered by explosive admissions of money laundering.

The casino, the state’s largest single-site private sector employer, says it will co-operate with the Victorian Commission for Gambling and Liquor Regulation investigation.

It follows the NSW gambling regulator last month blocking the planned launch of the casino group’s new $2.2 billion Sydney gaming complex.

The Independent Liquor & Gaming Authority halted the opening after Crown made an 11th-hour submission to the Bergin inquiry — held this year to probe the suitability of Crown Resorts to hold a Sydney gaming licence — about criminals laundering cash through Crown in Melbourne and Perth.

Crown’s counsel Robert Craig, SC, told the inquiry: “Crown accepts that there were funds deposited into the Riverbank and Southbank accounts … indicative of ‘cuckoo smurfing’ — it is indicative of a form of money laundering.”

Victorian Gaming and Liquor Regulation Minister Melissa Horne said a review was necessary. Picture: AAP

ILGA chair Philip Crawford said he would not give Crown the green light to open the NSW casino until Commissioner Patricia Bergin handed down her findings on February 1.

“We’re talking about potentially drugs, we’re talking about child sexual exploitation, we’re talking about people trafficking and we’re talking about financing terrorism,” Crawford said during a press conference announcing suspending the opening last month.

The public hearings have probed the operation of the James Packer-backed group of casinos across the country, including revelations of money laundering, organised crime and its use of junket operators to bring Chinese high-rollers to Australia.

Victorian Greens leader Samantha Ratnam said the investigation was “long overdue” and called for Crown’s licence to be suspended pending the inquiry.

“The Greens have repeatedly called on the state government to curb Crown’s unacceptable behaviour, but sadly it has taken a NSW inquiry to spur them to act,” Ms Ratnam said.

“Given the damning evidence coming out of the inquiry — including bags of cash under desks, tampering with poker machine controls and money laundering — Crown shouldn’t be allowed to retain its Victorian licence while this investigation takes place.

“It is outrageous that Crown has been allowed to engage in behaviour like this.”

State opposition leader Michael O’Brien said the VCGLR had been “asleep at the wheel”.

“It’s not good enough. We need a watchdog, not a lapdog,” Mr O’Brien said.

“Daniel Andrews has to be dragged kicking and screaming to do anything when it comes to Crown Casino,” he said.

“Victorians need to know that the casino is run properly. We need to make sure that our casino is not going to be a site of crime.

“Where was the Victorian regulator, a year ago, two years ago, even six months ago?

“When it comes to Crown, Daniel Andrews has got a blind spot. Victorians can’t afford a blind spot when it comes to integrity.”

But the Premier rejected the government had been slow to act.

“I don’t accept this notion that there hasn’t been a thorough and proper examination over a long period of time of many different issues,” he said.

“It is always challenging to take criticism seriously from people who are opposed to the very thing that they are seeking to regulate.”

“It would be my hope that after that thorough piece of work’s concluded, that some of the issues that have been raised can be accounted for.

“And that we can have confidence that the biggest single site employer in the state, Crown Casino, is being run to the highest of standards, we’re all entitled to that reassurance.”

Independent federal MP Andrew Wilkie said a royal commission was needed into Crown as well as “the behaviour of the regulator, the Victorian government and indeed some politicians”.

“Crown could not have done what is has done if the regulator was doing its job. The VCGLR is part of the problem and it’s concerning the review will be conducted under its umbrella. We need to be careful this is not another whitewash,” he said.

“The Victorian government has been running a protection racket and it beggars belief that it’s taken an inquiry in another state, a Tasmanian MP, and the media to finally bust Crown open. The Victorian Government was clearly pushed to the point where it could obfuscate no more.”

The most recent investigation into Crown in Victoria, the sixth casino review, was in 2018. The next review was not due until 2023.

A dedicated commissioner will be appointed to the Victorian Commission for Gambling and Liquor Regulation to carry out the latest review.

Ms Horne and the government will then examine the findings to work out any appropriate and necessary action at the conclusion of the investigation.

Crown, in a statement on Thursday, said it has “actively engaged” with the VCGLR “in relation to matters the subject of the ILGA inquiry, including on Crown’s reform agenda”.

“Crown will continue to work cooperatively with the VCGLR to support this review,” it said.